Tuesday, June 17, 2025

AI Emerges as Key Growth Catalyst for CMOs, Yet Operational Challenges Persist

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In an evolving marketplace where technology reigns supreme, a recent study by the IBM Institute for Business Value reveals a stark truth: while Chief Marketing Officers (CMOs) acknowledge the transformative potential of artificial intelligence (AI), a significant execution gap persists due to operational complexities and fragmented systems.

The study surveyed 1,800 marketing and sales executives and unveiled that a remarkable 81% of CMOs regard AI as a pivotal asset for driving growth. However, an alarming 84% note that operational challenges hinder their ability to fully leverage this technology. This disconnect poses a substantial impediment for small business owners looking to adopt AI strategies effectively.

One of the most striking findings indicates that 54% of respondents underestimated the complexity involved in translating AI strategies into actionable outcomes. Many small business owners, particularly those with limited resources, may not realize the extent of this operational challenge. The implications of these findings point to a pressing need for businesses of all sizes to conduct thorough assessments before implementing AI technologies.

As CMOs take on heightened responsibilities for profitability—64% report this obligation—it becomes clear that a strategic approach to AI integration can create significant financial benefits. The research indicates that CMO respondents facing internal collaboration challenges experienced a 12% reduction in revenue growth, compared to a 13% increase among peers who foster collaboration. This seemingly small margin translates to a potential revenue difference of $140 million for an average company with a $14 billion revenue base.

Jonathan Adashek, Senior Vice President of Marketing and Communications at IBM, asserted, “The companies that will dominate the next decade are the ones with the deepest AI integrations. This means starting with AI at the core of the organization and building the right operating model and team on top of that.” This perspective resonates deeply with small business owners who must balance innovation with operational viability.

However, successfully adopting AI isn’t just about technology; it also requires a cultural shift within organizations. Only 23% of surveyed CMOs believe their teams are equipped to handle the operational and cultural transformations that AI demands. A staggering 67% feel this cultural reshaping is part of their responsibility. For small businesses, fostering a culture that embraces change may require dedicated leadership and training efforts.

As CMOs delve deeper into AI strategies, they also find themselves unprepared to deliver measurable results. While 65% agree that having AI-literate employees is essential for achieving their objectives, only 21% feel they have the talent needed for the next two years. This mismatch highlights a critical area for small business owners to focus on: investing in training and development to ensure their teams are equipped for the AI future.

Operational silos also pose a hurdle. Only 28% of surveyed organizations reported that the end-to-end customer experience is effectively managed across functions. This disjunction can sap financial performance, suggesting that small businesses should prioritize aligning marketing, sales, and operational efforts. Survey respondents indicated that better cross-functional collaboration could potentially unlock a 20% revenue increase.

Looking ahead, small business leaders must also consider evolving privacy regulations, with 69% of CMOs indicating they will need to rethink their data strategies. This shift adds another layer of complexity, particularly for smaller entities that may struggle to keep pace with compliance.

To better navigate these challenges, focusing on simplifying technology infrastructure can significantly enhance operational efficiency. Roughly 68% of surveyed CMOs believe this simplification is key to improving effectiveness—a sentiment that small business owners should take seriously.

The insights from this study clarify that while AI holds the promise of greater efficiencies and growth, the path to successful integration involves overcoming substantial operational and cultural challenges. For those small business owners willing to invest in strategic planning, collaboration, and employee training, the rewards could be transformational.

The full study can be viewed for more in-depth insights at www.ibm.com/thought-leadership/institute-business-value/en-us/report/2025-cmo.

Image Via BizSugar

Leland McFarland
Leland McFarlandhttp://bizsugar.com
Leland McFarland is a startup advisor and entrepreneur dedicated to helping new business owners launch and grow successful ventures. As the owner of Small Business Trends and BizSugar, Leland provides expert insights on startup strategies, business planning, and growth tactics. With years of experience guiding startups from concept to reality, his advice empowers entrepreneurs to make informed decisions and achieve lasting success. Leland’s expertise has been featured in top business publications. When he's not sharing startup advice, Leland enjoys exploring tech innovations and relaxing with a good video game.

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